The smallest and trendiest of the Aeolian Islands, Panarea has gained a cult status amongst Milanese fashionistas like Armani; European royalty like Prince Laurent of Belgium; Russian oligarchs like Abramovic; and American celebrities like Beyonce and Jay Z, who descend upon the island in the summer seeking its laid-back tranquility, azure waters, pretty pebbled beaches and magical isolation. Ideal for a romantic break or a writer's retreat, our collection of the best places to stay in Panarea will ensure a luxurious and relaxing stay, and includes hilltop retreats, glamorous clifftop villas, and a small boutique resort.

Just two and a half kilometres by two, Panarea doesn’t have a lot of land to wow you with, but its volcanic formations, verdant hills and lush valleys, and rather beautiful terraced farmland, are magical. The major settlement is San Pietro, and even that is entirely car-free, meaning to get around you have to stroll leisurely, travel by ocean, or hire a golf cart — all of which add a feeling of summer resort happiness that's difficult to stifle. As well as some of the best places to stay on Panarea, San Pietro has a number of excellent restaurants, boutiques, bars and cafes, and a charmingly tangled web of whitewashed houses. During the summer months, particularly between July and August, the normally calm streets are filled with the roaring and raving sounds of partying from the open-air disco at Hotel Raya that overlooks the sea, which has been attended by the likes of Uma Thurman and Kate Moss in past days.

But you don’t need to bother with any activity at all, because Panarea’s idyllic beaches may well be enough for you. Some of our recommendations for the best places to stay on Panarea have private beaches, but almost the whole coastline is beautifully dotted with them. The southernmost point is Cala Junco, whose waters are clear-as-glass, while to the east lies Punta Milazzese, sitting beside the remnants of a Bronze Age settlement. On the north coast is Cala de Zimmari, the island's only sandy beach, and to the east of that is the Spiaggia della Calcara, a pure and magical place, with boiling underwater springs and beautiful views. The waters surrounding the island are ideal for scuba-diving and snorkelling: just off the coastline is the wreck of English merchantship, The Lanishman, sunk in 1900, but whose outline is visible from the island, and now a home to starfish and groupers. Panarea's tallest peak, the Punta del Carvo, stands at 421m high and boasts supremely gorgeous panoramic views of the island, surrounding sea and archipelago. So there’s a great goal if you need one.

The Best Places to Stay on Panarea

For A Beach Break

• The Hotel Cincotta sits very pretty on a low cliff, overlooking its own private stretch of rocky beach. Inside it’s whitewashed and traditional, with arched terraces and balconies overlooking the sea. Its 29 rooms and suites are decorated with patterned tiled floors, and have wrought iron bed frames and large windows, echoing classic seaside simplicity. The many terraces offer a hot tub, salt-water pool, a bar and an excellent restaurant. Romantic, charming, great for families, lots to do, and really super value.

To Relax in

• The Hotel Raya is designed to offer relaxation in a sophisticated setting — a setting which includes diving and sailing facilities and a nightclub, as well as the gorgeous infinity pool and spa you might have been expecting. The 30 rooms and suites, plus one private six-bed villa, are arranged so that they all have sea views and private balconies, and while the interiors are simple rather than glamorous, the atmosphere is certainly exclusive.

For Romantics

• The Quartara Resort Hotel is small and chic, with sea views and interiors that chime with the best seaside conventions: plenty of white, with a bit of wood and a bit of blue. Expect elegance and gauzy drapes, bougainvillea and a serene terrace with day beds, a spa and wonderful views. The restaurant has a Sicilian menu and bags of charm. Just 14 rooms and suites.

Prefer a Private Apartment or Villa?

• If you'd prefer the privacy of a self-catering option then browse through the wide variety available online with our partner, Booking.com.

Travel Information

• Panarea doesn’t have its own airport, the closest are on Sicily, or in Reggio Calabria. If you arrive into Palermo Airport you need to take the train or bus to Milazzo, then the ferry across to Panarea, which takes about two hours, depending on your ferry. Catania Airport requires a similar journey to the ferry terminal at Milazzo, or if you’re visiting in summer, you can arrive via Reggio Calabira Airport which is a spectacular journey across the Strait of Messina from Panarea, taking about five hours all in.
• The Aeolian Islands have a Mediterranean climate, which broadly speaking means hot, dry summers and mild, wetter winters, but because they’re islands they get some temperature regulation from the sea, so it’s only really hot mid-July through mid-August. The busy season for visitors runs throughout summer, though, and if you want to visit at any time in July or August you need to book early. For that reason our Gurus recommend April and June, or September as the best times to visit the Aeolian Islands. Spring is beautiful, and the tourist resources are just starting to open up again, whereas during September the water is still warm, but many visitors have left, so there’s more space on the beach! Travelling in these windows will probably mean you pay less too.

Still not sure where to stay?

• You could expand your search to include the best places to stay on the Aeolian Islands
• Expand further to include the best places to stay in Sicily, or just the best beach hotels on Sicily
• Alternatively, you could contact one of our friendly Gurus for personalised advice.